If you want additional funds for family or personal crises, such as a wedding or hospitalization, you may get a personal loan. Personal loans provide a handy means of obtaining extra financing due to their streamlined documentation requirements and expedited processing compared to other retail loans. In this article, you will be provided information about various ways to apply for a loan. Make sure you use the personal loan calculator to calculate the rate of interest that you have to pay.
How Do You Apply for a Personal Loan Online?
Suppose the personal loan applicant has a pre-existing affiliation with the financial lender. In that case, they may submit a personal loan application using their online banking account and qualify for a pre-approval. To apply for a personal loan online, other consumers may follow the processes outlined below:
- Access the online platform of the financial lender.
- Select personal loans from the loan area.
- Select the ‘apply now’ option.
- Complete the personal loan request form with the necessary information and deliver it to the bank.
- The bank will evaluate the applicant’s eligibility and request the provision of the necessary KYC papers and income records.
- Once the applicant is eligible, the bank will transfer the loan amount to the applicant’s designated bank account, as specified in the application form.
Personal Loan Application Offline
The following outlines the procedure for applying for a personal loan at the financial lender’s branch:
- Go to the office of the financial lender.
- Acquire the application form for a personal loan and input all the necessary information.
- Provide pertinent documentation substantiating one’s earnings, age, residence, and identification.
- Subsequently, the lender will authenticate the papers and assess the suitability of the application.
- The loan amount will be sent directly to their bank account if the application is qualified.
- Age and identity verification may be established using official documents such as a passport, Aadhaar card, Voter ID card, and similar forms of identification.
- Proof of residency such as home registration certificate, sales deed, Aadhaar card, Voter ID card, etc.
- PAN Card Proof of Income like form 16, salary slips, bank statements, income tax certificates, etc.
- Photographs of the size required for a passport.
- Personal loan application form that has been completed and signed by the applicant.
How Can You Determine the Approval Status of Your Loan Application?
Personal loan applicants can verify the progress of their application using the lender’s website by contacting the customer service department or visiting the lender’s branch. To verify the status of their loan, the applicant must provide the personal loan application reference number, the registered cellphone number, and the date of birth. However, after the lender grants approval for the personal loan, the borrower will be notified either by SMS, email, or their registered cellphone number.
Keep Your Documents Ready
Every bank or non-banking financial business (NBFC) must comply with a mandatory Know Your Customer (KYC) protocol before providing services to a potential customer. KYC, short for Know Your Customer, is a procedural mechanism to counteract fraudulent actions and verify a customer’s identity. As an application, it is important to ensure that you retain all the necessary papers for a personal loan. These papers are often seen as Know Your Customer (KYC) paperwork everyone owns. The main categories of KYC documents include verification of identity and age, photographic identification, confirmation of residency, and evidence of income. Before you submit all the documents, make sure you cross-check the personal loan rate.
Maintain Financial Discipline
A solid credit history is an important factor that lenders use in evaluating loan applications. Credit bureaus such as CIBIL carefully document the loan payment history when you receive money from a bank or lender. A high credit score is evidence of an individual being a responsible borrower and reliable client. A positive credit history allows you to be eligible for a larger amount of borrowing in the future and helps institutions offer lower interest rates and favorable repayment terms.
Obtaining a personal loan may seem complicated, but it only involves understanding the procedure for assessing applications and identifying which areas need improvement before submission. Perform a thorough evaluation of the lender’s criteria for qualification to determine whether you are eligible for a loan. Understanding the standards lenders use to evaluate loan applications is beneficial in determining where improvements can be made. Following the guidelines may significantly increase your chances of getting loan approval. Many personal loan calculators will help you to determine the rates of interest that will be charged during the period.